This topic contains a solution. Click here to go to the answer

Author Question: Agent's Duties to Principal. Sam Kademenos was about to sell a 1 million life in-surance policy to a ... (Read 129 times)

Anajune7

  • Hero Member
  • *****
  • Posts: 574
Agent's Duties to Principal. Sam Kademenos was about to sell a 1 million life in-surance policy to a prospective customer when he resigned from his position with Equitable Life Assurance Society. Before resigning from the company, he had expended substantial amounts of company money and had utilized Equitable's medical examiners to procure the 1 million sale. After resigning, Kademenos joined a competing insurance firm, Jefferson Life Insurance Co, and made the sale through it. Has he breached any duty to Equitable?

Question 2

A principal's major reason for developing agency relationships is to expand business opportunities.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dantucker

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

Agent's duties to principal
Yes. Kademenos has breached his duty of loyalty to Equitable Life. Under principal-agent law, an agent owes a duty of loyalty to the principal, and it is the agent's duty in all dealings affecting the subject matter of the agency to act with the utmost good faith, in loyalty, for furtherance and advancement of the principal's interests. Since Kademenos, as an agent of Equitable, had utilized Equitable's resources in advancing the interests of Equitable, he could not thereafter resign and sell a competitor's policy, since this would be detrimental to his principal. While an agent can normally terminate the relationship with the principal at will, he or she cannot immediately thereafter act contrary to the interests of the former principal by utilizing the principal's resources to the principal's detriment.

Answer to Question 2

TRUE




Anajune7

  • Member
  • Posts: 574
Reply 2 on: Jun 24, 2018
Wow, this really help


phuda

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

For a complete list of videos, visit our video library